Project Details
Project
Analog Devices, Inc. Green Bond Framework Second-Party Opinion
Client
Analog Devices, Inc.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Mar 2020
Evaluation Summary
Sustainalytics is of the opinion that the Analog Devices, Inc. Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Green Buildings, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Clean Transportation and Eco-efficient and/or Circular Economy Adapted Products, Production Technologies – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the projects financed by the proceeds of the green bond will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG Goals 6, 7, 9, 11 and 12.
PROJECT EVALUATION/SELECTION
ADI has appointed its Sustainability and Finance teams to oversee the Green Bond allocation and selection process. The teams will nominate projects submitted by the Company’s various business units and will recommend the allocation of eligible projects to the Treasurer who is responsible for final project approval. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
ADI will monitor and keep track of the green bond(s) net proceeds using its internal tracking systems. Pending full allocation of an amount equal to the net proceeds, proceeds may be temporarily invested in cash or liquid securities in accordance with ADI’s Investment Policy or used to repay existing debt. ADI intends to allocate within 24 months of issuance if feasible. Sustainalytics views this as aligned with market practice.
REPORTING
ADI intends to provide allocation and impact reporting on its website on an annual basis until full allocation. The report will include the allocation of net proceeds at the category level and a list of eligible projects which have been financed, including descriptions and, where feasible, impact metrics. Sustainalytics views ADI’s allocation and impact reporting as aligned with market practice.